Given the target prices voiced lately by global suppliers, which are considered by customers to be highly overvalued, the activity in the basic pig iron (BPI) market has remained muted this week. Nevertheless, BPI producers have opted not to give any discounts as of now, but to continue to evaluate the developments in the global steel and scrap markets, in particular. Specifically, having expectedly failed to attract any buying interest at $500/mt FOB, an India-based BPI producer has canceled its tender. “We will not sell at prices, which the customers are bidding now,” an official at the mill stated. Meanwhile, in the domestic market in India, BPI prices decreased up to INR 37,000/mt ($493/mt) ex-works in the latest bookings, down about INR 4,000/mt ($42/mt) within the past fortnight.
In China, a booking for 20,000 mt of ex-Russia BPI, for shipment in February from Far Eastern ports has been confirmed at $515/mt CFR.
Meanwhile, the regular CIS-based BPI suppliers have continued to insist on prices at $500-505/mt FOB, attracting no buying interest among customers. Likewise, Brazil-based BPI suppliers have maintained its stance in offerings at $500/mt FOB.
By the end of the previous week, an ex-Brazil BPI position cargo has been offered to Turkey at $520/mt CFR, however by the end of the current week even this price was considered to be too high. “I doubt that any higher levels than $500-510/mt CFR will work for Turkey in the coming bookings,” a key international trader commented. “Some traders appear to seek to get rid of material, concerning about a further decline,” a Europe-based trader stated.